Victory Co.’s net profit increased by more than 30% last year, and its three expense categories were reduced by over 60 million compared with 2024.

Source: Taishan Finance

Taishan Finance reporter Zhao Shijie

Taishan Finance reporter learned that recently, Shandong’s leading natural gas operator Shengli Co., Ltd. (000407.SZ) disclosed its 2025 annual report. The report shows that during the full year, the company achieved operating revenue of 4.165 billion yuan, a slight year-on-year decrease of 1.44%; it achieved net profit attributable to the parent company of 156 million yuan, a year-on-year increase of 32.87%.

In terms of business structure, Shengli’s natural gas and value-added business generated revenue of 3.267 billion yuan, accounting for 78.44% of total revenue; the equipment manufacturing business generated revenue of 898 million yuan, accounting for 21.56% of revenue. By region, the Shandong region contributed revenue of 1.992 billion yuan, accounting for 47.84%; revenue shares for Hebei, Chongqing, and Henan were 16.04%, 13.23%, and 10.04%, respectively.

Shengli stated that during the reporting period, the company’s main clean energy business maintained steady growth; at the same time, driven by factors including an increase in investment income, precise control of costs and expenses, and effective improvement in asset efficiency, net profit attributable to the parent company achieved strong growth.

Regarding expenses, Shengli’s total “three expenses” in 2025 decreased by 64.38 million yuan compared with 2024. Among them, sales expenses were 195 million yuan, down 17.69% year-on-year; management expenses were 131 million yuan, up slightly 1.74% year-on-year; financial expenses were 58 million yuan, down significantly 30.02% year-on-year, mainly due to the company’s adjustments to its financing structure and a reduction in loan size. In the same period, research and development expenses were 23 million yuan, down 58.37% year-on-year, and the R&D expense ratio fell to 0.55%.

In addition, during the reporting period, Shengli’s asset impairment losses were 5.7297 million yuan, an increase of 186.98% compared with the same period last year; the goodwill impairment provisions for certain projects increased compared with the previous period. The company’s goodwill carrying value was 1.188 billion yuan, accounting for 19.06% of total assets, with a relatively large scale.

According to information, Shengli was established in May 1994 and was listed on the Shenzhen Stock Exchange in 1996. It is a controlling subsidiary of China Oil & Gas (00603.HK), which is listed on the Hong Kong Stock Exchange. It is understood that Shengli initially focused on the biopharmaceutical and agrochemical industries. In 2011, it started a strategic transformation toward the natural gas industry. It has fully deployed in the clean energy sector, with its business scale continuing to expand, and has formed a clean energy industrial landscape centered on the gas business, with its business covering key links across the entire value chain.

Of note is that Shengli is accelerating major asset restructuring. In October 2025, the company issued an announcement stating that it plans to purchase gas-related assets controlled by the controlling shareholder China Oil & Gas and its related parties through issuing shares and paying cash, and to raise supporting funds along with it.

According to the announcement, the transaction targets include 100% equity interest in China Oil & Gas (Zhuhai Hengqin) Co., Ltd., 100% equity interest in Tianda Shengtong New Energy (Zhuhai) Co., Ltd., 51% equity interest in Nantong China Oil & Gas Co., Ltd., and 40% equity interest in Qinghai China Oil Gangehe Industrial Park Gas Co., Ltd. After the transaction is completed, the gas assets in the above four locations will be injected into Shengli.

As disclosed in the annual report, at present, the work related to this restructuring is being advanced. Shengli pointed out that the dual engines of industrial development and capital operations, are the company’s strategic initiatives to improve its industrial layout, deepen industrial synergy, and enhance enterprise value.

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